SGX (SGX:S68) reported a robust set of 1HFY26 results which exceeded our expectations. Operating revenue rose 7.9% y-o-y to S$736.2m. This was driven largely by its Fixed Income (+29.8%), Currencies and Commodities (+13.6%) and Equities – Cash (+16.2%) businesses, but partially offset by weakness at its Equities – Derivatives (-5.2%) segment.
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Reiterating its dividend guidance.
SGX declared an interim dividend of 21.75 Singapore cents. This represented an increase of 20.8% y-o-y. Management reiterated its guidance on dividends, medium term organic revenue growth (excluding treasury income), expenses and CAPEX.
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Market reforms.
SGX FX achieved an all-time high average daily volume (ADV) of US$180b in 1HFY26, while securities daily average traded value (SDAV) jumped 19.5% y-o-y to S$1.51b, which was the highest since early 2021. Retail participation in cash equities also rose to a 4-year high.
One initiative that investors are clearly looking forward to is the ongoing equity market reforms. Management remains sanguine on its initial public offerings (IPOs) pipeline, and this would be supported by the Global Listing Board (GLB) partnership with Nasdaq to encourage dual listings of companies in the US and Singapore. Companies in discussions are from the high growth and new economy sectors, with targeted listings from mid-2026.
Lift our fair value estimate to S$18.17 but maintaining our HOLD rating.
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
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